Guide to holiday rentals and long-term rentals

In the Costa del Sol, areas such as Nerja, Frigiliana, Torrox or Marbella are highly sought after both for holiday rentals and for long-term rentals. Before putting your property on the market, it is essential to know the updated regulations to avoid fines and maximize profitability.

In this article, we summarize the essentials for holiday rentals and also for those looking for stable leases of months or years.

Holiday rentals today: what you need to know

1. Unique Rental Registry (NRUA) – Mandatory since July 2025

- All tourist accommodations need the Unique Rental Registry Number (NRUA).

- Without this registration, listings on platforms can be removed and lead to fines of up to €600,000.

2. Registration as self-employed

- If you regularly manage rentals with services (cleaning, linens, guest support…), you must register as self-employed.

- If you only rent occasionally, you can declare the income in your personal income tax without registering in RETA.

3. Community of owners’ approval

- Since April 2025, to rent your property as a holiday home you need the approval of 3/5 of the community of neighbors.

4. Tax obligations

- Personal Income Tax (IRPF) or Non-Resident Income Tax (Form 210).

- In case of additional services, also VAT (Form 303).

- Platforms automatically report to the Tax Agency through Form 179.

Long-term rental: regulations and advantages

Long-term rental in Nerja and any other point of La Axarquía is on the rise, especially among foreign residents who want to live year-round on the Costa del Sol.

Basic rules according to the Urban Leases Law (LAU)

1. Minimum duration: Contracts are usually for 1 year, extendable up to 5 (7 if the landlord is a company).

2. Mandatory deposit: One month’s rent for main residence contracts. An additional guarantee (bond, deposit) may be requested.

3. Income tax declaration: Income is declared as real estate capital gains. The reduction for main residence rental may vary depending on current regulations and contract conditions.

4. Deductible expenses: Property tax (IBI), community fees, insurance, repairs, and utilities (if paid by the owner).

Advantages compared to holiday rental

- Stable and predictable income month by month.

- Less daily management, without constant tenant changes.

- Greater legal security with a contract regulated by the LAU.

- Growing demand in La Axarquía (families, European retirees, and remote workers).

Which option to choose: holiday rental or long-term rental?

The #EfectoNarixa: your rental in good hands

At Narixa Villas we know that legality and professional management are key to getting the most out of your property:

- Holiday rental: we manage your property comprehensively (reservations, cleaning, check-in, marketing) while complying with regulations.

- Long-term rental: we find reliable tenants, draft contracts according to the law, and advise you on taxation.

Visit us at our offices in Nerja or contact us and request advice with no obligation.